As social media becomes a larger focus for brands and organizations, and we get past the experimental phase and into the operational stage of social media, I believe this will continue to happen. With more consumers and money shifting to social media, traditional agencies are doing everything they can to get up to speed, but it’s likely they’ll buy their way there instead of building it.
Even within the social media industry, acquisitions and partnerships are already being made. Ant’s Eye View expanded their colony by acquiring popular business authors and renowned bloggers Ben McConnell and Jackie Huba. Dachis Group crossed the Atlantic through it’s acquisition of Headshift. And the Altimeter Group tripled in size when Jeremiah Owyang, Deb Schultz, and Ray Wang announced they were joining Charlene Li’s venture.
Build it or buy it?
Today’s big deal puts another tally in the acquisition corner, but it’s not a surprise. We’ve even seen these tactics being employed by Des Moines -based Meredith Corporation. Their interactive division (now Meredith 360°) has been scooping up service providers left and right over the past few years.
Also, as Aaron Strout discusses in his blog post about today’s acquisition, Powered feels this situation is the solution that businesses and marketers are looking for:
“We felt like it was important to take this approach because up until now, marketers have lacked a “go to” resource that could meet all of their social needs.”
Is a consolidated marketplace inevitable?
With the seemingly high number of companies looking to address the social media space in Des Moines, how long will it be before businesses start being assimilated into larger companies? Or are traditional agencies content with trying to develop these skills in-house? Or is there still room for more people to do social media consulting?
In the fast-paced, cut-throat world that we are all doing business in, I think acquisition is a very likely scenario for agencies, just like brands themselves are bringing talent inside their organization.
Will there be a fallout of social media companies in Des Moines? Can more be achieved through a united front and working together?